13 Percent of Obamacare’s 2015 Sign Ups Dropped Out A Month Later

The Administration released data on the status of enrollees in second open enrollment, which ended on February 22 (give or take a few days, depending on the state):

About 11.7 million Americans selected plans through the Health Insurance Marketplaces as of February 22, the end of the “in-line” special enrollment period for 2015 Open Enrollment for individual market coverage. On March 31, 2015, about 10.2 million consumers had “effectuated” coverage which means those individuals paid for Marketplace coverage and still have an active policy in the applicable month.

That’s a 13 percent drop-out rate within five weeks. Actually, I am happy to see if it those people got employer-based coverage, which has explained most growth in coverage over the last few years.

This shrinks the number of people who will be enrolled in health plans that will lose tax credits if the Supreme Court decides for the plaintiff in King v. Burwell. Sarah Kliff of Vox estimates it would now cost 6.4 million people their artificially low premia.

As it stands, the Administration reports that 8.7 million people are in plans that receive tax credits averaging $272 per month. That amounts to just under $30 billion annually.

Print